Home Markets The BDI@806 just pays the OPEX; Geopolitics turbulent

The BDI@806 just pays the OPEX; Geopolitics turbulent

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John Faraclas

The BDI (Baltic Dry Index) gained a hefty 28 points surpassing the 800 point mark and now stands at 806 points, …“enough” to pay the OPEX but not a nickel of the Capital and Interest – and if you are heavily indebted, your lenders might call it a day. The Geopolitical environment isn’t rosy either… John Faraclas midweek recap:

The Capers were up nearly 100 points – to be precise 95 and the BCI 2014  now reads 951 points; we propose caution as this volatile size and the overcapacity coupled with  luck of commodities can return to a falling BCI…

The Panamaxes returned to a plus modus and the BPI gained two points…

The Supras’ BSI was up 19 at 783 points, and

The Handies’ BHSI at 410 – up eight…

So an upwards Dry market but as we numerous times insist we need to see another 1,500 points at least – at 2,200 points, the levels of December 2013, all will be smiling… and the nightmare will be over, but not for long, as shipping becomes shipping for the very very very few… We can entertain live on any A1 TV anybody willing to challenge us on this aspect and prognosis!

The Wets though could not follow the …“euphoria” of the Dries and the last published BDTI (Dirties) and BCTI (Cleans) closed  down at 857 and 612 points, which is minus two and one point respectively…

The WTI stood at 22:00 GMT at US$53,56 with a downward trend; CAUTION. You all know by now our view for the need that the price shouldn’t exceed a nickel above the US$50 as the poor get poorer. We remind you our position for the use of alternative sources of energy and indeed we would love to see big money changing hands!

The Dow Jones for the 9th consecutive trading day went yet for another record topping up at 20,775.60…Stability, grosso-modo, was the name of the game for all the other major bourses… We shall see. The Athex though still struggles clocking today 647,14 down…

The Geopolitical front continues its erratic  course and it remains what the situ be this time next year…

The MIGRANTS issue continue to govern the news becoming a hot top story. In Mexico the Foreign Minister there Luis Videgaray said his country could not “accept unilateral decisions imposed by one government on another“; expect an uneasy relation there. President Trump looks unlikely to back-off and the Mexicans will do everything to make it a mess worldwide. Caution. The epidemic can spread and expect social upturns all over Planet Ocean…

Tim Wilson and Kim Tanneberger replying to questions

At lunch time today we attended the much awaited Lloyd’s Register Seminar on “Preparing for 2020”. Following a light buffet launch Tim Wilson and Kim Tanneberger delivered an excellent slides presentation at a full house in the Society’s special purpose auditorium. A lot of questions and many dilemmas… We will revert with a full write up; watch this space.

More news before midnight.

In the meantime have a nice evening and ensure all is fine as terrorists of any kind loom in the background all over Planet Ocean!

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